Tax experts, quick question on 1099-INT and 1099-MISC

I am an independent contractor and get all my income reported on 1099-MISC from my various clients. One issued me a 1099-INT form by mistake for the work I did for them in 2019, instead of it being on a 1099-MISC form. I did reach out to them for correction/clarification, but as its a huge entity, I doubt I'll get a response and I'd like to move forward with my taxes.

As I can support it was misc income for work I did and not interest from any account with them, can I just go ahead and report it in my tax software program where I enter in all the rest of my 1099-MISC forms, instead of the area where it asked for 1099-INT income? I mean, its still income no matter where its reported.

Thanks in advance.

 

You could always contact the IRS and ask for help, but I imagine that would not be a timely solution. I have never been asked to clarify any 1099 income. I think that the worst that could happen is that you get a letter from the IRS asking to explain the discrepancy. Since you are attempting to accurately account for your income, you should be fine. I have received multiple letters from them over the years, and , contrary to popular opinion, they have always been helpful in clarifying any issues.

 

I'd put it in the 1099-MISC line, make a note of it yourself, print out whatever communication you had with the company to get it rectified, and leave it in the folder incase the IRS gets interested.

As Nigel said, most times the rank & file folks that do the work are actually helpful.

 

Let me preface this with a caveat...I am not a tax expert. Unless INT income is taxed differently than MISC income, you should be able to continue your return, chase down the correct form and file an amended return if necessary.

 

Hopefully a lawyer or CPA will have an answer for you but at a minimum, I think I would write a letter explaining the mistake and what it did to correct it on my tax return. That way, if there are questions later, it doesn't look like you were cheating.

 

It is, TTBOMK.

Payroll taxes aren’t due on interest income.

 

Good point.

 

I have some calls in and am awaiting a response. I wanted to get some additional data points and go with what a majority say.

 

A brave soul you are.

 

IMO, in no way would I offer up the explanation with the return. Only if they have questions after the fact.

 

The company that sent you the wrong 1099 needs to file an amended 1099-misc to rectify their mistakes with the IRS. They should send you a corrected 1099. File the income as a 1099-misc. Or wait for the corrected 1099. The IRS is going to be more interested in their error than your reporting of income. Keep copious records. Just my opinion but this is why I pay an accountant.

 

If it was me and the 1099 only had income, ie they didnt withold any taxes on the other 1099-misc, then i would just declare it 1099 misc and file.

Of course ask your customer for the correct form but I wouldn t wait if this is the only thing holding you up.

 

I didn't mean to send it with the return. What I had in mind was something like a registered letter, a separate mailing. Probably sent even before mailing the tax return. You know, wait a week or two to show "good faith." But honestly, it's more brainstorming than anything else. I don't have a strong opinion on it.

 

You could always not file the misreported income and more than likely the IRS will notify you that you left it out. I've accidentally left out some 1099 income before and just had to file an amended return and pay the tax owed on that amount. They sent me a letter letting me know. No big deal. That might buy you some time to get the actual form you need.